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Charlotte is the picture of a healthy investment environment. Investors should consider the advantages of working with an experienced property investment advisor who is extremely familiar with the city

 

Buying Income Property in Charlotte: 2018 Multifamily Market Trends

Jul 24, 2018

Charlotte is one of the most vibrant multifamily property markets in the country and, while it continues to evolve, it looks set to remain active for a long time to come. Charlotte is a prime destination for investors buying income property and developing it.

Why You Should Consider Buying Income Property Today in Charlotte’s Hot Multifamily Market

Charlotte’s healthy economy is driving both population growth and the expanding housing market. In June 2018, fueled by $13.4 million worth of city-provided incentives,[1] Amazon announced plans to build a new distribution center that will employ 1,500. Additionally, international consulting firm EY (formerly Ernst & Young) has announced that it will employ hundreds of people in a new office to open in the nearly completed RailYard complex on the southern edge of the city. That development will include 100 “micro apartments.[2]

As of June 2018, there were 27,000 new units planned or under construction, with rising rents and luxury amenities that are becoming ever more extravagant.[3] While that number is impressive, the influx of apartments has not yet saturated the market. Analysts say that by 2030, the city will need 72,000 more apartments.[4] Rents have risen in Charlotte from an average of $842 in 2013 to $1,142 in June 2018.[5]

While Charlotte’s central Uptown neighborhood remains the center of luxury construction, it is also seeing rapid development on its edges and in its suburbs. In many cases, development is comprehensive, creating living, working, and social spaces all at once and orienting them around mass transit.[6]

For example, a new $1.2 billion Blue Line transit extension will transform a 9.3-mile stretch of the city. “We won’t recognize this corridor in the next 10 years,” former governor Pat McCrory commented at the ribbon-cutting for the commuter railway in February. More than 5,000 units are planned or being built along that stretch of the rail line.[7]

Growing Pains and Civic Solutions

Charlotte city officials expect the market to remain active. The city council has been working on new zoning ordinances, referred to as the “unified development ordinance” (UDO) since 2013, with the goal of rolling them out by mid-2020. After municipal elections in late 2017, that plan was supplemented by another called CharlotteFuture 2040. The new ordinances will simplify life for real estate developers, as current zoning rules are difficult to interpret and follow.[8]

Other quality of life issues are emerging, too. Development plans are seeing pushback in some areas, both in the city itself and north of Charlotte, where a decade of growth has already transformed some communities. Pedestrians and bicyclists are beginning to see their needs addressed and mass transit is improving in what has always been a very car-dependent city. The quality of the new housing architecture has also been a matter of extensive conversation, but improvement has been noted over earlier “beige box” designs.[9] Concerns about historical preservation are beginning to be heard as well.[10]

The acquisitions market in Charlotte is also thriving, and the city is encouraging investors in this sphere. For example, an executive with an investment company that recently purchased three properties along the Blue Line railway stated that his company was working with the city and county to add sidewalks and lighting around the properties.[11]

Charlotte is the picture of a healthy investment environment. There are civic issues that have to be considered when planning a property’s future, but these are not unusual. Rather, they are a normal part of urban development, though they are somewhat magnified in Charlotte by the speed of the city’s growth. Investors should consider the advantages of working with an experienced property investment advisor in Charlotte.

At CWS Capital Partners, we are experts in investment and property management in Charlotte. Our experienced staff can help you with all aspects of your multifamily property investment strategy in the city, whether you are looking to acquire existing properties or seeking to identify opportunities for development. We can also guide you through the 1031 exchange process. To learn about our North Carolina properties, please visit our affiliated CWS Apartment Homes website.

Please contact us to learn more about investing with CWS Capital Partners, or view our current offerings by completing our self-certification form for accredited or qualified investors.

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The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. CWS has made this third party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and sentiment may change due to legal or economic conditions.

All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing.

Advisory services are provided by CWS Capital Partners LLC, a registered investment advisor.

Securities offered by CWS Capital Partners LLC are through an affiliated entity, CWS Investments. CWS Investments is a registered Broker Dealer, member FINRA, SIPC.

 

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